Group 1 - The core viewpoint of the report is that the preference for duration in the market has increased, particularly for fixed-rate preferred stocks, due to a shift in the U.S. Treasury market dynamics [2][4]. - The report highlights that the demand for $25 fixed-rate preferred stocks has reached a nine-month high, surpassing the demand for $1,000 floating-rate preferred stocks, with the former rising by 2.9% in the second half of the year compared to a 0.9% increase for the latter [4][8]. - The report indicates that despite the rising demand and yields, $25 preferred stocks remain cheaper than $1,000 preferred stocks, with a spread of approximately 63 basis points, which is in the 84th percentile since 2012 [8]. Group 2 - For cautious investors, the report suggests focusing on older $1,000 preferred stocks, which have lower yields but shorter durations and lower interest rate sensitivity, providing a yield premium of over 100 basis points compared to investment-grade bonds [14]. - The report notes that the average back-end spread for newly issued preferred stocks in 2025 is only 275 basis points, the narrowest on record, indicating a potential increase in extension risk [14][17].